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Partners of Mint found a residential rental fund

16.11.2020

Partners of Mint Group have established a fund called MINT rezidenční fond SICAV, acting on behalf of the MINT I. rezidenční podfond SICAV. This sub-fund is focused on rental housing and its aim is to invest in economically strong domestic agglomerations - especially in Prague and Brno.

This is the first fund for small investors focused on rental housing in the Czech Republic. The sub-fund has already acquired its first acquisition: the Mint Living Brno Campus project in the South Moravian metropolis for more than CZK 500 million, which offers 120 mostly small flats as well as office and retail space. All apartment buildings that the sub-fund will acquire in the future will become part of Mint Living brand.

MINT I. rezidenční podfond SICAV is an open-ended sub-fund intended for the general public with a target output of 4-5% per year. However, the founders of the sub-fund expect even higher yield, at the level of 6-9% per year. The sub-fund offers investors monthly liquidity and monthly revaluation of assets. The minimum investment is 500 CZK. At the end of October 2020, the value of one investment share was worth 1 CZK.

"Our long-term goal is to be a leader in the dynamically developing segment of modern rental housing. We want the general public to perceive our fund as the first choice

landlord in economically strong agglomerations," said Mint Investments partner and one of the fund's founders, Radim Bajgar.

The sub-fund will mainly purchase new rental apartment buildings with at least one hundred apartments, which are already planned for rental housing during design and construction and which will be fully furnished. The fund is negotiating with several developers who would build tailor-made projects for the sub-fund in the Czech cities - both in terms of the composition of the flats and their size.

According to Radim Bajgar, investing in housing is far more understandable to the general public compared to investing in commercial real estate.

"Because we are the first public fund for retail investors in the Czech Republic focused on rental housing, we want to actively shape this specific market - both in terms of investment and in terms of standard. Investors can profit with us from the rapid development in this real estate segment. It's easier than taking out a mortgage on an investment apartment and then struggling with renting and managing it. For many people, buying investment stocks in our sub-fund may be much more attractive. Compared to commercial real estate, the residential segment is significantly less dependent on the economic cycle and we consider the ratio of return and risk borne to be more attractive,” comments Radim Bajgar.

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